Trump threatens higher tariffs on India over Russian oil trade

Trump last week said he would impose a 25% tariff on goods imported from India

05 August 2025
Trump Threatens Higher Tariffs on India Over Russian Oil Trade

U.S. President Donald Trump said on Monday he will substantially raise tariffs on goods from India over its purchases of Russian oil.

"India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine," Trump said in a post on Truth Social.

"Because of this, I will be substantially raising the Tariff paid by India to the USA."  He did not elaborate on what the tariff would be. 
 
 
India’s trade ministry did not immediately respond to a request for comment.
 
Trump last week said he would impose a 25% tariff on goods imported from India and added that the world's fifth-largest economy would also face an unspecified penalty but gave no details.
 
Over the weekend, two Indian government sources told Reuters that India will keep purchasing oil from Russia despite Trump's threats. The sources did not wish to be identified due to the sensitivity of the matter.

India slams 'unjustified' criticism

Meanwhile, India has rejected the "unjustified and unreasonable targeting" of the nation for importing oil from Russia after the commencement of the Ukraine conflict.

"Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," the Foreign Ministry spokesperson Randhir Jaiswal said in a statement.

In the statement, the spokesperson noted that India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. "The United States at that time actively encouraged such imports by India for strengthening global energy markets stability," he said.

Furthermore, Jaiswal said, India's imports are meant to ensure "predictable and affordable energy costs" to the Indian consumer.

"However, it is revealing that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion," he claimed.

Pointing out the EU and US trade with Russia, he said Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment.

"Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals," he added.